Deck 3: The Managers Changing Work Environment and Ethical Responsibilities: Doing the Right Thing

Question 1

The employees of a production facility that produce parts for boats are meeting to discuss ways to control rising costs,which are affecting their bonus (incentive pay).The employees are internal stakeholders of the factory.

Answer 1

True

Question 2

Paul,who is normally an ethical person,has an opportunity to acquire what he feels is "easy" money in his job,and he believes it is safe to steal the money because nobody would know if he does take it.Paul rationalizes that it is fine to steal the money because he needs it more than the person whom the money belongs to.The psychological mechanism that causes Paul to want to steal the money is poor self-esteem.

Answer 2

False

Question 3

Alonzo,the president of his high school's senior class and honor society,has been very busy and did not study for an important history test.Although Alonzo is very confident,he realizes that he probably will not do well on the test.He has talked himself into cheating because he believes that cheating will help him maintain his strong GPA,which he will need to be accepted by a good college.He tells his friend,"I don't usually cheat,but I really have to do it." Which of the following might explain Alonzo's behavior?

A)the holier-than-thou effect
B)the deception effect
C)the cheating requirement
D)a depression disorder
E)motivated blindness

Answer 3

E

Question 4

When the Kiddie Village Daycare Center looks at the recent increase in the number of working mothers in its neighborhood to determine how many employees to hire,its managers are studying demographic forces.

Question 5

What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs,often based on predefined goals?

A)sustainability program
B)code of ethics
C)diversity program
D)financial audit
E)social audit

Question 6

Pleasant Resort,a successful 100-year-old hotel and resort,entered into a co-marketing arrangement with A-Plus Hotels,a five-star hotel chain.Both companies benefit from the new relationship.Pleasant is now able to market its facility and services through A-Plus's marketing team,and A-Plus Hotels now offers access to an upscale resort that it can recommend to its customers who are looking for a resort experience.A-Plus Hotels and Pleasant Resort can be considered strategic allies.

Question 7

The Sarbanes-Oxley Act set up the Federal Trade Commission to ensure consumer protection and to eliminate and prevent anticompetitive business practices,with penalties of as much as 25 years in prison for noncompliance.

Question 8

The general environment,or macroenvironment,includes six forces: economic,technological,sociocultural,demographic,political-legal,and international.

Question 9

An organization's internal stakeholders consist of

A)the board of directors,employees,and suppliers.
B)the board of directors,customers,and owners.
C)customers,families of employees,and employees.
D)the board of directors,employees,and owners.
E)competitors,the community,and suppliers.

Question 10

Shane,a sales manager,remarked that typically,her employees sincerely and positively overstate their job performance and abilities.This is an example of the ____ effect.

A)overstatement
B)motivated blindness
C)holier-than-thou
D)cheating
E)fudging

Question 11

Don,the owner of a bait and tackle shop,attended an entrepreneurship workshop that discussed the triple bottom line,which measures an organization's ____ performance.

A)social,environmental,and financial
B)financial,diversity,and environmental
C)social,synergy,and diversity
D)marketing,profit,and efficiency
E)social,effectiveness,and financial

Question 12

Just before introduction of a new revolutionary laptop,the Top205 by Top Computers,Greg,the CEO of Top,was informed that a problem with a part inside the Top205 may cause reliability issues.Greg knows that correcting the problem will delay the introduction of the product,and be expensive due to possible order cancelations and added advertising costs.But he also knows that allowing the new flawed computer into the market will affect Top Computers' reputation.Greg's decision whether to delay the introduction of the Top205 or proceed as planned is an example of an ethical dilemma.

Question 13

The task environment of Top-Notch Sewing consists of just two groups,customers and stockholders,who give the employees and management of Top-Notch the daily tasks that the company's employees will handle.

Question 14

Paul,the vice president of marketing in an international sales organization,is considering opening an office in a new country.He is looking at the current economic,political,legal,and technological global forces in that country that can affect the success of his company's expansion into the new area.These forces that Paul is studying are international forces.

Question 15

As businesses are going green today,sustainability programs have produced environmental benefits,but unfortunately,they have also resulted in higher costs and lower revenues,and at times,they have hurt organizations competitively.

Question 16

After the scandals at WorldCom,Tyco,Adelphia,and Enron,in which company employees lost millions of dollars and their nest eggs,U.S.companies showed less concern for corporate governance and more interest in the development of corporate social responsibility.

Question 17

Habitual cheating tends to begin with small infractions,such as illegally downloading books and songs,and then grows by increments into an ongoing deliberate strategy of deception or fraud.

Question 18

Despite recent pressure from stockholders to increase profits,World Extraction Corp. ,a global petroleum organization,has maintained a practice of consistently acting ethically by being a good global corporate citizen,taking host-country and global standards into consideration when making decisions,and obeying the laws of host countries as well as international law.World Extraction Corp.provides an example of a company acting in a socially responsible way.

Question 19

Companies can reduce unethical behavior by offering a case-based approach to ethics training that presents employees with ethical dilemmas and clarifies expectations.

Question 20

Prior to a 2010 natural-gas pipeline explosion in San Bruno,California,Pacific Gas & Electric chose to use its surplus revenues to improve safety,an example of ethical decision making.

Question 21

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store.ABC relies heavily on Best Supply to help sell its goods and services to customers.Best Supply is a(n)____ for ABC Brothers' products.

A)competitor
B)distributor
C)customer
D)subsidiary
E)account ally

Question 22

A supplier is an external stakeholder that

A)competes for customers or resources.
B)helps a company sell its goods and services to customers.
C)joins forces with another company to achieve advantages that neither can achieve on its own.
D)rescinds tax breaks when firms don't deliver promised jobs.
E)provides raw materials,services,equipment,labor,or energy.

Question 23

Amy,a successful banker and educator,has decided to retire,but she is very interested in staying involved with a company "that cares." So when asked to serve on its board of directors,she gladly accepted the invitation.As a member of the board,Amy will be involved with the organization's

A)overall strategic goals and approval of major decisions.
B)daily company management and employee supervision.
C)overall strategic goals and global HR management.
D)daily specific company goals and management of a specific department.
E)oversight of sales and marketing.

Question 24

_______ are regulatory agencies,such as the SEC (Securities and Exchange Commission),that establish ground rules under which organizations may operate.

A)Whistle-blowers
B)Government moderators
C)Government regulators
D)Interest groups
E)Watchdogs

Question 25

The mass media are part of an organization's

A)general environment.
B)task environment.
C)internal stakeholders.
D)macroenvironment.
E)distribution network.

Question 26

Don was recently promoted,and his salary increase includes retirement investment options,so he has decided to take part in an ESOP.This means that Don

A)will be on the company's board of directors.
B)will participate in an Externship Supervisors' Oversight Plan.
C)will be buying or receiving shares of his company's stock.
D)is now one of the company's external stakeholders.
E)is in charge of an investment group.

Question 27

Patsy,a registered nurse,has decided to start a home healthcare service to assist with the medical,meal preparation,and light housecleaning needs of older adults.To grow her business,Patsy is focusing her marketing efforts on the older adult population;in these efforts,she is involved with the _____ environment.

A)task
B)general
C)internal
D)natural capital
E)strategic allies

Question 28

The marketing director for Zap Games,a video game company,has informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products because the distributors are part of the ______ environment for Zap Games.He believes that a stronger relationship with distributors will lead to more market share,and higher profits,for both Zap Games and its distributors.

A)strategic
B)focused
C)outlying
D)external
E)task

Question 29

Which forces are part of the macroenvironment?

A)economic,technological,sociocultural,and diversity
B)diversity,microenvironment,sociocultural,demographic,and political-legal
C)globalism,technological,sociocultural,demographic,and microenvironment
D)economic,technological,sociocultural,demographic,political-legal,and international
E)international,demographic,diversity,family,culture,and technology

Question 30

Joe,a lobbyist who represents the oil industry,is meeting with several members of Congress to try to exert political influence by contributing funds to the lawmakers' election campaigns.Joe also is involved in a letter-writing campaign to promote his cause.Joe is working on behalf of a

A)government regulator.
B)task force.
C)focus group.
D)strategic alliance.
E)special-interest group.

Question 31

Which type of funding raises small amounts of money from many people to finance a new venture?

A)crowdfunding
B)multifunding
C)duplicating
D)venture-funding
E)angel-financing

Question 32

What is a synonym for the macroenvironment?

A)economic environment
B)ethical environment
C)microenvironment
D)task environment
E)general environment

Question 33

To focus on improving company customer service this year,the CEO of a pet food manufacturer outlined a list of stakeholders to concentrate on: distributors,local communities,and the mass media.These three groups are

A)external stakeholders.
B)general stakeholders.
C)internal stakeholders.
D)preferred stockholders.
E)interest groups.

Question 34

Ole McDonald,a successful farm equipment supply company in the Midwest,has joined forces with A-Plus Supply,a national hardware and home retailer.As a result of this new relationship,Ole McDonald can open stores in other regions and A-Plus can now offer a high-quality product in the farm community.Ole McDonald and A-Plus Supply are now

A)distributors.
B)competitors.
C)customers.
D)suppliers.
E)strategic allies.

Question 35

Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients;the board of Warm Hearts is called the

A)board of directors.
B)board of ethics.
C)strategic board.
D)daily oversight committee.
E)board of regents.

Question 36

Since the 1950s,the percentage of the U.S.labor force represented by unions has

A)rapidly increased.
B)steadily increased.
C)fallen to nearly zero.
D)steadily declined.
E)remained unchanged.

Question 37

Rebecca and Donna,owners of Fine Coffee and Pastry Shop,are concerned because Panera Bread is opening a new store just one mile from their shop.Rebecca and Donna know that Panera will be offering similar products;therefore,Panera Bread will be a ____ to Rebecca and Donna.

A)competitor
B)competitive ally
C)strategic ally
D)distributor
E)internal stakeholder

Question 38

The city government of Pleasantville promised significant tax breaks to a large retailer if it opened a store in Pleasantville,which would result in nearly 200 new local jobs.However,the retailer decided that it would staff the new Pleasantville store with employees from its other stores,meaning no new jobs were created.As a result,the city of Pleasantville instituted clawbacks by

A)increasing the tax breaks offered to the retailer.
B)forcing the retailer to pay large fines.
C)rescinding the tax breaks given to the retailer.
D)boycotting the retailer.
E)forcing the retailer to unionize.

Question 39

Local communities are stakeholders of organizations because communities

A)rely on the products the companies produce.
B)rely on the tax base from companies and the jobs the company provides.
C)wish to join forces with organizations to create strategic alliances.
D)need a major corporate presence to maintain federal funding of the local highway system.
E)prefer products made by large multinational organizations over locally made products.

Question 40

Marie and Marti are partners who solely own M and M Florist.As owners,they can

A)claim only limited liability.
B)avoid taking any legal responsibility for M and M.
C)sell stock in their company.
D)claim an organization as their legal property.
E)decide not to pay a dividend to their stockholders.

Question 41

A(n)____ is a formal written set of ethical standards guiding an organization's actions.

A)moral compass
B)business plan
C)dilemma document
D)ethical plan
E)code of ethics

Question 42

The employees of Mom's Pizza,a local pizza restaurant,feel that the owners and managers really try to follow the ethical policies outlined in their company's code of ethics.Pete,a cook,said that "Just today,Joe,our manager,called our supplier to let them know we received an extra case of tomatoes that we did not pay for.And they do this type of thing almost every day." Mom's Pizza maintains a(n)

A)dilemma-free climate.
B)profitable climate.
C)ethical climate.
D)holier-than-thou atmosphere.
E)synergy environment.

Question 43

_____ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization.For example,some cities in the United States (including New York and San Francisco)have set the minimum wage far above the federally mandated minimum wage.

A)Political-legal
B)Demographic
C)Financial
D)Sociocultural
E)Technological

Question 44

______ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.These beliefs may include the idea that employees should be promoted solely on the basis of merit,that no bribes will be paid to foreign officials to obtain business licenses,and that companies should offer extended maternity leave upon the employee's request.

A)Morals
B)Norms
C)Ethical advantages
D)Values
E)Fairness factors

Question 45

Jane,a successful store manager,leads her employees by encouraging them and showing that she genuinely believes in them.She also encourages group and team efforts.Jane manages at Kohlberg's _____ level of personal moral development.

A)unconventional
B)nonconventional
C)conventional
D)postconventional
E)preconventional

Question 46

Ethics are

A)influences arising from changes in the characteristics of a population.
B)an organization's written code of social responsibility.
C)standards of right and wrong that influence behavior.
D)a set of behaviors accepted as "right" or "good."
E)rules to be enforced in an organization.

Question 47

The Sarbanes-Oxley Act of 2002 established requirements for ____.Noncompliance can result in penalties of

A)proper financial record keeping for private companies;as much as 25 years in prison.
B)proper financial record keeping for government organizations;as much as 25 years in prison.
C)codes of ethics guidelines for organizations;as much as $2 million.
D)proper financial record keeping for public companies;as much as 25 years in prison.
E)all corporate financial records to be made public;as much as $5 million.

Question 48

Don has managed several restaurants for over 50 years and is close to retirement.With his maturity and business experience,his decisions are sound,based on solid,proven values.Don tends to be an independent thinker who focuses on empowering his employees.Don manages at Kohlberg's ______ level of personal moral development.

A)conventional
B)nonconventional
C)unconventional
D)preconventional
E)postconventional

Question 49

To increase profitability,top management of a national retailer needs to decide if it will close several stores.Management knows that by closing the locations,it will save the company millions of dollars and benefit many stockholder groups and individuals.The benefits of closing the stores outweigh the benefits of keeping them open.Keeping the stores open would be advantageous for many fewer people than closing the stores.This logic is an example of the ___ approach to deciding ethical dilemmas.

A)individual
B)majority
C)utilitarian
D)justice
E)moral-rights

Question 50

Fewer children are interested in learning how to play a musical instrument,and young people having less interest in owning cars.These two trends are examples of ____ forces at work.

A)diversity
B)financial
C)political
D)sociocultural
E)legal

Question 51

Joe,the owner of ABC Electronics,just discovered that his trusted friend Paul,his accountant for over 30 years,has been mishandling the company books and stealing from the company bank account.Joe must decide whether to ignore his friend's actions and avoid bad publicity for ABC Electronics,or to have Paul arrested for embezzlement.Joe is facing

A)a whistle-blower.
B)a synergy factor.
C)an issue of corporate governance.
D)a social audit.
E)an ethical dilemma.

Question 52

_____ forces lead to new developments in methods for transforming resources into goods or services.For example,a new technique called hydraulic fracturing (or fracking)has been developed to harvest natural gas trapped below the earth's surface.

A)Sociocultural
B)Technological
C)Demographic
D)Political-legal
E)Media

Question 53

When a food distributor considers changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America,it is examining the ____ forces at work in the southern United States.

A)economic
B)demographic
C)technological
D)political
E)legal

Question 54

Tom and his managers are discussing the unemployment,inflation,and interest-rate trends that might affect their chain of coffee shops over the next 12 months and the projected growth in the areas where the stores are located.The managers are studying the ______ forces in their organization's general environment.

A)technological
B)sociocultural
C)political
D)economic
E)international

Question 55

Bernard (Bernie)Madoff used money from newer investors to pay off older investors.Which type of scam was Madoff running?

A)illegal lobbying
B)insider trading
C)salami slicing
D)Ponzi scheme
E)whistle-blowing

Question 56

Changes in the economic,political,legal,and technological global system that may affect an organization are ______ forces.For example,stresses within the European Union (including the United Kingdom's recent decision to exit the EU)may have global ramifications.

A)local
B)demographic
C)international
D)technological
E)internal stakeholder

Question 57

Greg,the president of an IT company,is friends with Jack,the CEO of HyperTech,a company that develops and manufactures computer hardware.Jack tells Greg that HyperTech is about to announce the creation of a revolutionary new computer processor that will quadruple processing capacity and cause HyperTech's sales and profits to skyrocket.Greg then purchases a large number of shares of HyperTech company stock before the news of the new computer processor is made public.In which illegal activity has Greg engaged?

A)a Ponzi scheme
B)short selling
C)issuing a call
D)information abuse
E)insider trading

Question 58

With recent reports of identity theft,Mr.Jones,the CEO of a construction company,is concerned about his employees' privacy,and because of recent accidents on the job,he is also worried about the safety of his workers.Mr.Jones's concerns with privacy and health and safety are key elements in the _____ approach to deciding ethical dilemmas.

A)individual rights
B)justice
C)impartial
D)utilitarian
E)moral rights

Question 59

Consider the following situation: Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because polluting the stream helps farmers in the short term.However,farmers will act ethically in the short run to avoid harming others in the long run because doing so is also in the farmer's best long-term interests.This type of thinking reflects the _____ approach to deciding ethical dilemmas.

A)individual
B)group
C)moral-rights
D)utilitarian
E)justice

Question 60

______ guides the justice approach to deciding ethical dilemmas.

A)Increasing profits and workplace diversity
B)Respect for the fundamental rights of human beings
C)Respect for impartial standards of fairness and equity
D)Respect for society and the environment
E)The individual's best long-term interest

Question 61

The company that Don owns,the Ardmore General Store,is a family-owned company that has been in business for more than 100 years.Don wants to give back to the people of the community to acknowledge their role in the store's success.He decides to donate a significant portion of the store's profits to a charity every year.Don's decision is an example of ___ in action.

A)corporate social responsibility
B)corporate governance
C)a code of ethics
D)economic responsibility
E)legal responsibility

Question 62

Business scholar Archie Carroll suggested that ________ is the first and primary responsibility of an organization in the global economy.

A)to be a good global corporate citizen,as defined by the host country's expectations,
B)to make a profit consistent with expectations for international business
C)to be ethical in its practices
D)to obey the law of host countries as well as international law
E)to have a written code of ethics

Question 63

Contrast the viewpoints for and against social responsibility.Which leading economist argued against social responsibility?

Question 64

On an organization's board of directors,

A)inside directors are supposed to be elected from outside the organization and outside directors may be members of the firm.
B)inside directors must work for the company and outside directors are also members of the firm.
C)inside directors may be members of the firm and outside directors are supposed to be elected from outside the firm.
D)inside directors are always retired executives and outside directors typically are employees.
E)inside directors must work for the organization and outside directors are paid members of the organization.

Question 65

Summarize the Sarbanes-Oxley Act of 2002 and describe the mandates it placed on organizations.

Question 66

Explain the recent concerns for the independence of the board of directors.

Question 67

Sustainable economic development

A)meets future needs without compromising present needs.
B)always generates greater profitability.
C)produces greater diversity in the workforce.
D)meets present needs without compromising the ability of future generations to meet their needs.
E)is an idea proposed by Frank and Lillian Gilbreth to cut costs and increase efficiency.

Question 68

Joseph,a small café owner,is facing possible bankruptcy due to a severe decrease in business in his restaurant.Tom,a friend of Joseph,approached him about hiring illegal immigrants because Joseph can pay those workers a lower pay rate and save on payroll.Discuss some of the legal and ethical issues involved in this situation.How should Joseph respond to his ethical dilemma-should he hire the illegal immigrants or not? Explain your answer.

Question 69

This question contains two parts;be sure to answer both.First,compare the four levels of Carroll's global corporate social responsibility pyramid.Give an example of what is desired,expected,or required at each level by global stakeholders or global capitalism at each level.Next,imagine that you are the CEO of a corporation that runs a well-branded fast-food chain,Healthy Delight.Healthy Delight is in many countries,including nations in Europe,Asia,Africa,North America,and South America.Apply each of Carroll's four levels to your business.

Question 70

As the CEO of a company that produces products for schools,Hannah believes that her company needs not only to produce a profit but also to do things that benefit society._______ guides Hannah's beliefs.

A)Individual responsibility
B)The desire for sustainability
C)Social responsibility
D)A sense of moral rights
E)Corporate lobbying

Question 71

Phillip said to a close friend,"I am fed up with my company's continual disregard for the environment.They secretly dispose of hazardous chemicals into a nearby stream constantly.I don't know how they get away with it! I am going to call a reporter at the and reveal what my company is doing." Phillip's decision to tell somebody about his company's actions is an example of

A)operating at a preconventional level.
B)violating a code of ethics.
C)backstabbing his manager.
D)being guided by the invisible hand.
E)whistle-blowing.

Question 72

Which of the following describes the system of corporate governance?

A)governing an industry,such as the trucking industry,to protect customers
B)protecting citizens against unethical state and national governments
C)governing a company so that the interests of corporate owners and other stakeholders are protected
D)monitoring an industry,such as law firms,to ensure ethical practices
E)monitoring and limiting corporate political donations

Question 73

This question has three parts;be sure to answer all three.First,contrast the "holier-than-thou" effect and motivated blindness.Second,explain how both concepts might apply to the following situation: "Glenn is the president of the senior class,and he is having a very busy semester,trying to balance his coursework and his internship at a major company.He can't find the time he needs to write a term paper for his history course.To save himself time,he decides to buy a prewritten paper from a website that sells papers for a hefty fee." Third,explain the dynamics behind cheating.

Question 74

Which of the following is an example of a green policy or action?

A)A local factory pollutes the atmosphere via smokestacks that belch out carbon dioxide.
B)The owner of a sole proprietorship announces that she is taking on a business partner.
C)A major publisher donates 10,000 books a year to national literacy groups.
D)3M encourages employees to experiment with creating new products.
E)Coca-Cola has pledged to replenish (return to nature)all the water it uses to make its beverages.

Question 75

Mr.Smythe,a wealthy businessman who made his fortune in the oil industry,understands the importance of a college education,so he has donated over $10 million over the last several years to colleges and universities.Mr.Smythe's actions are an example of

A)philanthropy.
B)sustainability.
C)servant leadership.
D)mentoring.
E)corporate governance.

Question 76

With regard to boards of directors,and in particular their oversight of the CEO,the board of directors' _______ is the biggest complaint.

A)lack of interest in company matters
B)lack of corporate social responsibility
C)focus on profit over employee satisfaction
D)lack of independence from the CEO
E)lack of a written ethical code

Question 77

Summarize Laurence Kohlberg's three levels of personal moral development.Imagine that you manage a local gym,and explain how your management style or techniques would be different at each level.

Question 78

This question has two parts;be sure to answer both.First,what are external stakeholders? Next,imagine you are the manager of an art gallery,Diaspora,whose mission is to show (and sell)art by marginalized populations,such as the homeless or undocumented immigrants.Describe at least three of Diaspora's external stakeholders in the task environment.

Question 79

This question has two parts;be sure to answer each one.First,what are stakeholders,and why is it important for managers to understand this concept? Second,describe the stakeholders at a nonprofit organization,Just Say No Way,whose employees travel to grammar schools to talk with students about the dangers of drugs.

Question 80

This question has two parts;be sure to answer both.First,explain each element of the triple bottom line.Next,imagine that you are managing White Teeth Inc. ,a company that produces chemical treatments that dentists use to whiten their patients' teeth.Explain how you might take each element of the triple bottom line into account in your day-to-day management of the company.